Bed Bath & Beyond
Bed Bath & Beyond: Owing to the worsening financial situation, the home goods retailer Bed Bath & Beyond warned on Thursday that it might need to file for bankruptcy. The business is having problems acquiring new consumers despite its efforts. As a result, the Union, New Jersey-based company offered a grim message emphasizing the grave uncertainty over the company’s ability to continue.
“There is substantial doubt about the company’s ability to continue as a going concern,” mentioned the retailer in the regulatory filing. From restructuring its debt to seeking additional cash, selling assets and more, the company added that it is exploring strategic alternatives. According to the Wall Street Journal’s reports, Bed Bath & Beyond is preparing for bankruptcy within weeks.
https://www.sec.gov/Archives/edgar/data/886158/000119312523001983/d443321dnt10q.htm
Bed Bath & Beyond’s stock plunged more than 20% during early trading Thursday. It dropped below $2 a share, which is an all-time low. On Thursday, Neil Saunders, an analyst at GlobalData Retail said in a note to the clients, “Bed Bath & Beyond is too far gone to be saved in its present form.”
Since its establishment in 1971, the company has become a go-to place for inexpensive furnishings for college dorm rooms, kitchenware, and home decor. The company gained traction for its omnipresent blue 20% off coupons and huge storefronts with merchandise piled to the ceilings. Brands competed for shelf space at the company. However, the company’s recent statement came after the latest sign of trouble.
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The company faced trouble making the transition to online shopping. As a result, it fended off other larger chains like Walmart and Target. As the novelty of Bed Bath & Beyond’s coupons wore off, many customers shifted to those rivals since they could discover much more affordable options on Amazon (AMZN) and other online retailers.
Additionally, during the pandemic, stores of rivals remained open in 2020, but Bed Bath & Beyond did not. Due to this, the company lost about 17% of its sales in 2020 and 14% in 2021.
-Bharat Express
